Homework

Exam Practice
Explain the weaknesses of family owned businesses (8)
Family owned businesses suffer from many disadvantages compared to
larger businesses or franchises. While a family business offers the
owner more freedom and innovation it also comes with the downside of
being less organized and often leads to confusion.
Not only this but employees may not be as serious if they are related
to the owner, not fearing repremand for slacking off or perhaps family
issues could tear a hole in the business.
A family business is also harder to adapt to change being more
traditional and of historic importance to the family. This may also stifle
innovation and lead to inefficiency.
Discuss why some businesses do not set a growth objective (12)
A business may be serving a niche market and may not want to
expand outside of that, a family owned business is also less likely to
want to expand due to it being just that, a family business.